POSTED: Wednesday, March 13, 2013 - 5:03pm
UPDATED: Thursday, March 14, 2013 - 10:45am
AUSTIN, TEXAS (KVEO NEWSCENTER 23) — On Wednesday the Texas Senate passed a bill that will help inform consumers when purchasing homeowners insurance.
Senate Bill 122, filed by Brownsville Senator Eddie Lucio, Jr., will require insurance companies to provide an explanation of each deductible selected by the insured and the dollar amount of each deductible instead of the percentage amount.
Many consumers often assume the deductible percentages are applied to the amount of the claimed loss when in fact the deductible percentage is applied to the insured value of the home under the policy causing consumers to pay more in premiums.
Under the bill insurers would have to print and explanation of deductibles on a separate page.
The bil is not retroactive for current consumers with a policy, but when their policy renews a revised declaration form would show the new explanation.